ST. LOUIS (AP) -- Monsanto Co. is selling its sweetener ingredient business, which includes a NutraSweet brand name, to a Boston-based investment firm for $440 million.
The St. Louis-based agricultural and pharmaceutical company said Monday it has signed an agreement to sell the unit to J.W. Childs Equity Partners II LP. Monsanto said the firm has substantial experience in the food, beverage and food ingredient industries.Monsanto said J.W. Childs has agreed to retain all current employees in the sweetener ingredient unit.
The company also announced the sale of its interest in two European joint venture companies, NutraSweet AG and Euro-Aspartame SA.
The deals end Monsanto's business in consumer and bulk food ingredients. Last week, the company announced it had completed the sale of its tabletop sweetener business, which also includes a NurtaSweet brand, to Merisant Co.
The company has been selling divisions that don't fit with its long-term strategy of pharmaceuticals and argriculture-related products.
"We've delivered on the restructuring commitments we made in 1999 in order to realign our long term strategies," Gary Crittenden, Monsanto's chief financial officer, said in a statement. "Proceeds from these divestitures will further strengthen our balance sheet, and will enable us to focus on the areas critical to achieving our near- and long-term growth targets."
Last week, Monsanto shareholders approved a merger with drug-maker Pharmacia & Upjohn. The deal must still be approved by the European Union, and is expected to close by April 1. It will create the nation's 11th largest drug company.
Monsanto's agricultural business will remain in St. Louis, will keep the Monsanto name and will eventually make an initial public stock offering.